The appellant, Amazon Technologies Inc, challenged a judgment where the Single Judge awarded Lifestyle Equities CV and its group damages of ₹336 crores for alleged trademark infringement concerning the use of a polo player logo mark on apparel sold under Amazon’s private label ‘Symbol’ through Cloudtail on Amazon India’s platform. The claim in the original plaint had been for ₹2 crores, which was never formally amended.
Procedurally, Amazon Technologies was proceeded ex parte after allegedly being served, though the service itself and the manner of proceeding were contested. The trial, recording of evidence, and final submissions happened entirely in the absence of Amazon, with only the plaintiff present. The Single Judge ultimately passed a decree against Amazon Technologies for ₹336 crores plus costs, based solely on the plaintiff’s evidence and post-argument written submissions that significantly enhanced the damages claim, without any formal amendment to the pleadings.
The dispute centered on whether it was legally permissible to award damages vastly beyond what was pleaded, and whether Amazon Technologies, which claimed only to have licensed its ‘Symbol’ mark to Cloudtail, could be held liable for infringing products where Cloudtail had admitted unilateral responsibility.
In discussion, the Division Bench highlighted that the entire trial and award process violated principles of natural justice, as the decree was passed in the absence of the main defendant, based on new claims that were neither pleaded nor proven through contested evidence. The Court emphasized that the damages claim could not be expanded from ₹2 crores to ₹336 crores through written submissions alone, without amendment and without giving the absent defendant a chance to respond.
The Court stayed the operation of the decree, including the requirement to furnish security, finding this to be an exceptional case where enforcing the decree pending appeal would cause substantial injustice.
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